• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

The higher salary level test is dead, but not for everyone

Get PDF file

by on
in Office Management,Payroll Management

Regulations under the Fair Labor Standards Act were to have raised the guaranteed weekly salary exempt administrators, executives and professionals must earn to $913 a week ($47,476 a year), up from $455 ($23,660 a year). However, a federal court has issued an injunction preventing those regs from going into effect, which means that you don’t have to give out raises.

But that’s not the end of the story. States can set their own salary levels in one of two ways:

1. They can explicitly provide for either a minimum weekly, monthly or annual salary, or

2. Their minimum wage rate, when multiplied by 40 hours a week, can outstrip the federal guaranteed salary amount of $455 a week, so that it functions as a salary level test.

STATE LAW CHECKUP: The chart below summarizes these state laws and lists the guaranteed weekly and annual salary amounts (and sometimes monthly amount) employees must earn to be exempt under state law. For states that don’t have their own salary level amounts, the federal amounts are listed.

Heads up: Municipalities and counties that set their own minimum wage rates will affect the salary employees must earn to be exempt. Of course, these employees must also pass the duties test for their exemption. To get the full story, you should contact your state and local labor departments.


Click the image to download.

All-States Chart on Exempt Salary Levels

















Leave a Comment